The Nifty Bank Index comprises the top 12 banking institutes from both the public and private sectors. Given below are all these private and non-private banks that represent Bank Nifty.
Nifty bank stocks Vs Finnifty Stocks, which one to choose for trading? Finnifty represents finance stocks, while Bank Nifty represents the banking sector. In this article, we will explore Finnifty vs. Bank Nifty to help you understand what these indexes are and which one can suit your preferences while online trading.
What is Bank Nifty?
Bank Nifty is a niche-specific index that represents the top banking stocks in India’s stock market. In other words, it is also referred to as the "National Stock Exchange’s index of banking stocks."
Due to its immense influence on the banking sector, Bank Nifty remains a popular choice among futures and options traders. The index also works as an indicator for traders by providing them with a brief picture of the performance of the banking stocks for individual trades.
Companies in Bank Nifty
The Nifty Bank Index comprises the top 12 banking institutes from both the public and private sectors. Given below are all these private and non-private banks that represent Bank Nifty.
1. State Bank of India Ltd.
2. HDFC Bank Ltd.
3. Kotak Mahindra Bank Ltd.
4. The Federal Bank Ltd.
5. Bank of Baroda
6. ICICI Bank Ltd.
7. IndusInd Bank Ltd.
8. Axis Bank Ltd.
9. Punjab National Bank
10. IDFC First Bank Ltd.
11. Bandhan Bank Ltd.
12. AU Small Finance Bank Ltd.
What is Finnifty?
Finnifty is also a niche-specific index. The only difference is that this index counts stock of the top financial institutions. As a result, like Nifty Bank stocks, the profit/loss of the NSE’s index of financial stocks mirrors the performance of the top financial companies listed in the stock market.
The NSE’s index Finnifty was rolled out on January 20, 2021 which represents an organized version of financial stock assets. Similarly, it brought traders a unified window to watch and predict the financial sector as a whole.
However, the financial sector stocks may range from housing finance, insurance companies to banks.
Companies in Finnifty
Finnifty is a composition of 20 stocks with banks and insurance companies taking center stage. But in addition to this, some additional Financial companies are also there. Such as –
1. Axis Bank Ltd.
2. Bajaj Finance Ltd.
3. Bajaj Finserv Ltd.
4. Bajaj Holding & Investment
5. Cholamandalam Investment Ltd.
6. Hdfc Asset Management Company Ltd.
7. Hdfc Bank Ltd.
8. Hdfc Life Insurance Ltd.
9. Hdfc Ltd
10. Icici Bank Ltd.
11. Icici Prudential Life Insurance Ltd.
12. Icici Lombard General Insurance Ltd.
13. Kotak Mahindra Bank Ltd.
14. Muthoot Finance Ltd.
15. Piramal Enterprises Ltd.
16. Power Finance Corporation Ltd.
17. Rural Electrification Corporation Ltd.
18. SBI Life Insurance Ltd.
19. Shriram Transport Finance Company Ltd.
20. State Bank of India Ltd.
To earn the spot into Nifty Bank stocks or Finnifty stocks, the company must pass certain criteria. Such as, how a company performs in the market, market capitalization and its market liquidity are considered.
Conclusion
Despite most banking stocks taking the lead in the Finnifty stocks index, it is still traded as an individual index like future & options trading in Bank Nifty. But owing to the presence of non-bank related financial stock, Finnifty stocks may not perform the same as Bank Nifty. So make sure you are using a trusted trading platform like Dhan to avoid any confusion linked with the performance of both Finnifty and Nifty Bank.
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